Bottoms' Drive Plan Targets Georgia Car Insurance Costs With 2.25% Tax Cut

Could a single policy change finally bring Georgia car insurance costs down for millions of drivers across the state?

Democratic gubernatorial candidate Keisha Lance Bottoms thinks so. As CBS News reported, Bottoms unveiled her "Drive Plan" at an Atlanta gas station, targeting both insurance premiums and fuel taxes with a package she says would deliver guaranteed, long-term savings. The proposal goes straight at Georgia's 2.25% tax on car insurance premiums, and, critically, requires insurers to pass every dollar of those savings directly to policyholders, according to CBS News.

A Georgia candidate wants to cut your car insurance bill, here's how

Bottoms framed the Drive Plan as a direct response to what she called unacceptable and ongoing financial pressure on Georgia families. The centerpiece is straightforward: eliminate the state's 2.25% auto insurance premium tax and legally require insurers to transfer those savings to drivers, no loopholes, no administrative delays.

"Our plan will provide guaranteed savings by eliminating the state auto insurance premium tax for Georgia drivers and requiring the savings to be passed on to drivers," Bottoms said.

Beyond the premium tax, the plan targets fuel costs, rate-hike frequency, insurer profits, and coverage access for lower-income households. It is one of the most comprehensive driving-cost platforms offered by a Georgia gubernatorial candidate in recent memory, though its full realization depends heavily on the state legislature.

Why Georgia drivers are paying so much to begin with

Georgia consistently ranks among the most expensive states in the country for auto coverage. According to a recent national analysis cited in the source, full coverage in Georgia averages $3,108 a year, a figure that strains household budgets across income levels.

Part of that burden comes from the structure of the state's insurance tax system itself. Georgia currently levies a 2.25% tax on car insurance premiums. For drivers already paying well above the national average, that percentage translates into real dollars added to every policy renewal.

The Save Max Quote Index, drawn from 3.3 million+ real quote requests, consistently shows Georgia ranking as one of the steepest markets for full-coverage premiums in the Southeast. Neighboring states like Tennessee drivers, who face a notably different rate environment, and South Carolina drivers navigating their own affordability pressures, illustrate just how much state-level policy shapes what consumers ultimately pay.

The existing fuel tax structure compounds the problem. Before Governor Brian Kemp's latest temporary 30-day suspension, Georgia collected 33.3 cents per gallon on gasoline and 37.3 cents on diesel, costs that flow through to every errand, commute, and school run.

What the Drive Plan actually proposes

Here is every distinct policy lever Bottoms outlined at the Atlanta news conference:

• Eliminate Georgia's 2.25% tax on car insurance premiums
• Require insurers to pass premium-tax savings directly to policyholders, no discretion allowed
• Lower the state gasoline tax to 28 cents per gallon
• Lower the state diesel tax to 31.3 cents per gallon
• End automatic annual increases in Georgia's fuel taxes
• Limit insurance companies to raising rates no more than once per year
• Create a state insurance consumer advocate position
• Require insurers to issue refunds when premiums collected exceed what is needed to cover claims and expenses
• Create a lower-cost basic insurance policy for income-eligible drivers
• Target additional fees charged to policyholders

Each item addresses a different pressure point. The refund requirement and rate-hike limit, in particular, go beyond simple tax relief and move into direct regulation of insurer behavior, an area that has historically been difficult to legislate at the state level.

How much could Georgia households actually save?

Bottoms provided specific savings estimates broken down by household type and cost category.

The $140 insurance figure represents what a two-vehicle family would save annually from eliminating the premium tax alone. The roughly $80 fuel savings comes from the proposed reduction in gasoline and diesel tax rates.

For a single driver, Bottoms estimated the combined package, insurance tax elimination plus fuel tax cuts, would save more than $100 a year. That number is smaller than the two-car family figure, which reflects the compounding effect of insuring and fueling multiple vehicles.

These are campaign estimates, not actuarially certified projections. But the SMQI consistently shows that even modest reductions in state-level premium taxes can produce measurable shifts in what consumers pay at renewal, particularly in high-cost markets like Georgia.

The political and legislative hurdles ahead

Here is the catch: Bottoms cannot implement the Drive Plan unilaterally.

Her proposed tax changes and new insurance regulations would require cooperation from Georgia lawmakers, a legislature that has not always moved quickly on insurance reform. Bottoms is also still a candidate, not yet in office, which means every element of the plan is subject to the political realities of both winning the governorship and building legislative coalitions.

"Together, these steps can make a difference in the bank accounts, in the pocketbooks of the people of this state who get up every day and work hard and just want some relief," Bottoms said.

Her opponent, Rick Jackson, is also running on affordability, but with a different toolkit. Jackson's campaign spokesman Garrison Douglas pushed back sharply, citing Bottoms' tenure as Atlanta mayor: "Keisha Lance Bottoms had four years to make Atlanta more affordable, and instead she raised fees on Atlanta households, more than tripled the fee on building a new home, and left the city less affordable than she found it."

Douglas added that Jackson's plan focuses on cutting the state income tax in half, lowering the property tax burden, eliminating state taxes on tips and energy, and ending government delays that drive up housing costs. The contrast sets up a clear affordability debate heading into the election, though neither plan is law yet.

Governor Brian Kemp's separate 30-day fuel tax suspension, which began Monday, reflects the immediacy of the problem. Bottoms argued the suspension should have happened sooner and insisted that drivers need relief extending well beyond a temporary measure.

What this means for you

Pull your current policy declarations page and look for any line items described as state premium taxes or assessments, that 2.25% line is exactly what the Drive Plan targets. Track the Drive Plan's legislative progress after the election, because even if Bottoms wins, the refund requirement and rate-hike cap will need General Assembly approval before they affect your renewal. If you are income-eligible, watch for details on the proposed low-cost basic policy tier, which could represent a separate and meaningful savings path. Use a Georgia car insurance rate comparison now to establish a baseline so you can measure any future savings against what you are actually paying today.

FAQ

About Aaren Ramon

Aaren Ramon is a Senior Analyst at Save Max Auto and owner of Elite Shield Agency. He covers carrier moves, regional insurance markets, and consumer-impact reporting from the agency-owner perspective. Read more from Aaren Ramon →

Edited by Cassidy Richey.

Methodology

This article is grounded in the source linked above. Save Max Auto data points referenced here are drawn from the Save Max Quote Index (SMQI), a proprietary instrument reflecting 3,364,317 real consumer quote requests submitted to savemaxauto.com. State and carrier rankings reflect the lifetime dataset; year-over-year shifts reflect a rolling 12-month window. The index is refreshed monthly. External authority figures referenced (NAIC, NHTSA, state regulators) reflect the most recent public data releases available at time of writing.

Sources

• Primary source: CBS News, "Keisha Lance Bottoms unveils new 'Drive Plan' to cut gas and car insurance costs for Georgians"